Stocks continued to slide today on global growth concerns. September will be a very volatile month and we most likely will see a 5-10% correction in markets over the next month. Selling today was sparked by the latest China report on manufacturing which came in at nine month low and continued after U.S. jobless claims increased.
Investors should begin to lock in profits and sell into rallies going forward. Now is not the time to be purchasing risky assets. Once the market falls then it will be a good time time to buy back your positions and begin new positions. Volume is still light on the NYSE and when volume does pick up expect it to be to the downside.
The catalyst for the correction will most likely be disappointment following the Jackson Hole meeting. If the jobs number for August comes in horrible that could sway the FED’s hand, however, since we are in an election year any further QE probably won’t happen until after the election.
Not all stocks got hit today. Hain Celestial Group (HAIN) jumped 19% today after the organic food producer announced they are acquiring U.K-based Premier Foods along with reporting strong earnings for the quarter.
Shares of Chinese search engine Baidu (BIDU) have slid 13.87% over the last 5 days. Deutsche Bank downgraded the stock to hold and there is potential legal action against fellow Chinese internet rival Qihoo 360 (QIHU). Shares of BIDU fell 10% today during intraday trading before rallying back to close down just 6% on the day. While we could test that intraday low tomorrow the recent slide in the stock should be tempered going forward.
The DOW (INDU) lost 115.30 points at -0.88%. The Nasdaq (COMP) fell 20.27 points at -0.66%. And the S&P 500 (SPX) lost 11.41 points at -0.81%.
Oil fell 99 cents to close at $96.27 a barrel.
Gold gained $32.30 to close at $1,672.80 an ounce.
The 10-Year Note fell pushing the yield up to 1.72%.
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